MUZAFFARABAD (Kashmir English): The Planning and Development Department of Azad Jammu and Kashmir (AJK) on Wednesday suspended all releases of funds worth billions for the first half of the current financial year 2025–26.
Earlier on Monday, the AJK government approved the release of Rs 7.98 billion in funds for multiple departments under the Annual Development Program (ADB) of FY 2025-26.
Despite the ongoing political uncertainty in Azad Kashmir, the AJK Cabinet sanctioned and disbursed historic development funds.
The withdrawal of the notification effectively froze billions of rupees that were disbursed by the government of PM Chaudhry Anwarul Haq to several departments.
A formal notification has been issued by the Planning Department, stating that “no further funds shall be released for any development scheme without written approval.”
The letter written to the Finance Department stated, ” No release against the Development Budget may be made without specific instructions issued and duly signed by under signed.”
The earlier letter authorizing the release of funds, signed by the Planning Office, has been withdrawn.
The decision comes two days after Anwarul Haq’s government transferred billions of rupees in development funds to various departments and schemes.
The bureaucracy failed the Anwarul Haq government’s attempts to award specific ministers and areas in the last days.
Reports suggest that a significant portion of the allocations had been made on political grounds, targeting specific constituencies and ministers.
The govt sources said that multiple ongoing projects across Azad Kashmir distributed on political grounds have been put in jeopardy due to the suspension of funds.
Officials said the freeze is temporary and releases may resume only after written approval from the competent authority.
